Recruitment firm Empresaria (LON:EMR) expects to beat market estimates this year after a strong first half, despite currency head-winds in a number of areas.
The group, which supplies permanent and temporary staff in 18 countries, said net fee income rose by 12% over the six months to June as the number of permanent placements in finance continued to rise.
Profits jumped 35% to £2.7mln or by 44% on a constant currency basis.
Sales overall edged lower to £92.4mln (£94mln), but within that number permanent sales rose to 47% of the total, up from 40%.
Temporary revenues fell 5% due to the weak euro and decision to exit small businesses in the Czech Republic, Slovakia and Malaysia, but Empresaria said it will invest to rebuild the proportion of temporary income as a proportion of the total.
Joost Kreulen, chief executive, added the improved quality of the group’s revenue was not showing in overall growth at present, but it would drive future improvements in profitability.
"Based on performance to date, we are confident that results for the full year will be ahead of current market expectations,” he added.
Broker Panmure Gordon raised its estimate for profits for the full year to £7.3mln on the back of the interims.
Adrian Kearsay, an analyst at the broker, said: “Given the on-going progress we can see the share price doubling (perhaps trebling, +3 year view).
“One third of the upside [will be] driven by earnings growth, the remaining from an expansion in the earnings multiple.”
His current price target is 125p and he has a 'buy' rating.
Shares rose by 11% to 79.9p.